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The debate opposing “austerity” and “growth” in which everything and its opposite is put forward: The appearance of a flimsy consensus between G20 participants recommending prioritising growth over austerity in the short term fails completely to take into account the structural differences between Members: some, such as Japan, China, the USA or the UK, have kept their entire sovereignty so that governments can rely on the exchange rate and the control over monetary creation as part of their economic policy toolkit; others, Members of the EMU which is deprived of any significant joint means of intervention, must rely exclusively on “national” budgetary and fiscal measures which are, in turn, subject to the legal/regulatory European framework to which they have adhered freely.
The question of “democratic legitimacy” and of transfers of sovereignty within the EU/EM: Finalising the Banking Union as well as sharing other policies over time (defence, foreign affairs, EMU economic policies, etc.) implies the progressive transfers of sovereignty in favour of European institutions. It is crucial to ensure the democratic legitimacy at each level of decision-making; it is impossible to reconcile the legitimacy of the democratic will expressed individually by 17/28 countries with the democratic legitimacy of shared powers. In this regard, the tensions between communities that surfaced during Belgium’s protracted “federalist” transition could usefully serve as a case study for European integration. Even if, in this case, the problem concerned transfers of powers towards the federated entities and not the reverse as within the EU, both situations deal with the complexities resulting from “transfers of sovereignty” and of the corresponding “budgetary resources”. Creating the single currency in 1999 within EMU makes the pursuit of further integration inescapable in order to consolidate the foundations of the edifice which has proved to be totally unprepared to deal with a severe crisis situation...
In conclusion, let us find once again inspiration in the new departure wished for by King Philip in his throne address, which describes the Belgian microcosm as a full scale laboratory. It demonstrates the constructive potential of national and European solidarity underpinned by clear rules and mutual respect. More than ever the motto “Unity gives Strength” is relevant to overcome the overwhelming challenges lying ahead.
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